Marketing Roadmaps

Business Management

The post about the business. Or the one in which my brain explodes.

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Colorful Fireworks over Lake

Folks that follow me on Twitter know that this year has been a particularly difficult one for my business. Projects are smaller in scope, delayed, canceled due to lack of funds or not closing at all. Lots of requests for advice and proposals. Not nearly as many closed deals. This is not unusual — everyone is feeling the pinch of the economy — but it is much harder to tough it out when you are an independent strategic consultant who primarily works on a project basis, rather than long term retainers.

To the point that I am re-evaluating my business model, selectively applying for marketing and social media positions, and hoping my brain doesn’t explode.

So here’s where I turn the tables, and ask you, my readers, for some advice. What should I do?

Issue 1: Have I been too generous with my advice? I give away a lot on this blog and have been stung by my one-hour free offer a few times this year. People taking advantage of the free advice with absolutely no intention  of exploring a longer-term business relationship. Should I retract the offer?

Issue 2: It’s hard for an independent consultant to compete with agencies for social media projects. The agency has depth on the bench, can go to the well of existing clients and has a cushion, even if small these days, for business development. But, is this really true, or am I giving a few defeats too much weight? There has to be a creative way to break through so I can pitch my ideas to the larger companies who do have budget right now.

I just have to find the formula, because, goodness knows, I have no shortage of ideas on how companies can integrate social media into their marketing plans to achieve tangible, measurable results.  And not just by throwing a party or giving away free stuff.

I’ve been noodling on an idea that would be just perfect for Interval International, the timeshare exchange company, and last night when the rain was drumming on the roof, I came up with:

  • a program for a travel catalog like Travelsmith or Magellan’s;
  • a possible approach for a manufacturer of reusable water bottles, for example CamelBak or SIGG;
  • a few ideas for big box retailer like Best Buy. As everyone in the social media twitterverse probably knows, Best Buy is hiring a social media marketing manager;
  • some thoughts for a book chain that has bricks & mortar stores — think Borders or Barnes & Noble.

The issues are:  how do I get the opportunity to pitch the idea, and then how do I protect myself from the firm just doing it themselves? Because that has happened more than a few times with larger companies in the five years I’ve been consulting. There are no hard and fast answers, but I cannot afford to develop a great proposal for a firm, only to see them execute it on their own six months later. Not anymore.

Issue 3: Small business. Is there an opportunity to help smaller local businesses get started with social media? Typically, they cannot afford to retain a consultant to develop a program or even a blog for them but most  could benefit from setting up a Facebook page.

So, I’ve developed a Social Media Start-up Session for small firms.  I can price it aggressively because the business owner is doing the work; I’m just helping her think through the issues and pointing her in the right direction.

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I’m doing some hard thinking this weekend. If you have any thoughts, please drop me a note at sgetgood@getgood.com. I would really appreciate your opinion and advice.

More on podcasting and Business Forward SMB podcast

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 "I think she’s got it." — Professor Henry Higgins

It was an experience, my friends, but I’ve finally nailed the various technical and software issues I was having in the podcast production process. There is so much more involved than simply recording and uploading to a server to produce a professional sounding podcast. I don’t think you can fully appreciate the process until you do it. I certainly didn’t.

I mentioned the Holtz-Hobson podcasting book in my previous post. Another book that proved invaluable was Sound Forge 8 Power! by Scott Garrigus.

Take a listen to the most recent program, Business Forward #6: Making Channel Sales Successful, our interview with SAP Channel Sales VP Dan Kraus. While the content of all the episodes is great (if I do say so myself), and the previous episodes sounded okay, this last one just sounds cleaner.

On another, but related, note, if you are a small business owner and will be attending BlogHer Business next month in New York, I’d love to interview you for the podcast. Drop me a note at sgetgood@getgood.com if you are interested.

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Contests. Sweepstakes. Prizes. Liability? Oh my!

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Contests on blogs. Everybody loves them. The blogger loves them because they often bring new readers. Readers love them because they might get free stuff and a mention on a popular blog. Companies who donate prizes love them because their products are mentioned on the blogs.

It’s a win for everyone.

Except, what if someone has an issue with the contest? What’s the liability of the blogger if someone complains about how the contest was run? It seems so odd to ask this question, given the overwhelmingly positive spirit of most contests on blogs.

I’ve done a contest with some friends through my personal blog Snapshot Chronicles, and it was nothing but fun – for me, for my friends and for the people who entered.

Then again, the prizes, while cool, weren’t of excessively high value. Camera cases, photo frames, pens and ball caps [thank you again Photojojo and HP], not trips to Europe and TVs. This is generally the case with most blog contests; the prizes are desirable but nothing to sue over.

Well, maybe not. Remember, there are folks who enter contests as a revenue stream, not just as a fun activity. For them, it is serious business. And the value of the prizes continues to rise.

What happens if someone decides it wasn’t fair, and decides to raise a stink? What is the liability of the blogger? How can she protect herself? Does the company donating the prize have any liability?

Companies who run contests, large and small, spend a lot of time and money reviewing terms and conditions. Bloggers cannot do the same, but my blogging colleague David Wescott and I decided to do a little research and offer some guidance.

I spoke with Donna DeClemente, a marketer who specializes in helping companies with contest promotions, and David spoke with Stephanie Himel-Nelson, who blogs at Lawyer Mama among other places. Read on for my post and go to David’s blog It’s Not A Lecture for his post.

My interest was both professional and personal. Let’s cover the professional first. If you have a product that is relevant and exciting for the blogger, and you can give him something to give away on his blog, do it! Makes everybody happy, and I love making everybody happy. I recommend this to clients that have appropriate products, and am in the middle of such a project right now – more soon – which is one of the reasons I started thinking about this issue.

Personally. While I do not do contests on this blog, I have done one on Snapshot Chronicles, and absolutely intend to do more. And I like my house, so I’d prefer to keep it. Do I have any liability when I run a contest?

Let’s hear from an expert. I met Donna DeClemente, who blogs at Donna’s Promo Talk, at BlogHer. She attends the promotional marketing law conference sponsored by the Promotional Marketing Association every year to stay up to speed with the regulations, and helps companies and bloggers like my friend Yvonne DiVita create contests and draft Official Rules.

I asked her about the different types of contests.

Donna: A sweepstakes is a random drawing that anyone who meets the eligibility requirements as written in the “Official Rules” may enter. Contests are different from sweepstakes. They are not just games of chance. The winner of a contest must provide a degree of individual skill or uniqueness. A contest also takes more work since all entries must be judged and/or evaluated. A raffle is a type of lottery in which prizes are awarded to people who pay for a chance to win. They are strictly to be used only as a fundraising tool by a non-profit organization. The rules vary greatly from state to state and should be reviewed carefully. A qualifying organization usually must complete an application. Raffles also are not allowed to be conducted or advertised over the Internet. (See David’s interview with Lawyer Mama for more on lotteries-SG)

Give me some general guidelines for holding a contest or random drawing.

Donna: The sponsor of a contest or sweepstakes, whether a company or an individual, assumes full responsibility for the contest. It is very important that a set of “Official Rules” be drafted and everyone who is eligible to enter have access to the rules. Once you have a set of Official Rules, you must follow these rules and not change them during the course of the contest. If you stick by them, then you should be clear of any liability if someone claims fraud or misrepresentation. For example, see the Lipsticking.com sweepstakes.

The key elements that must be included in the rules include the official sponsor, eligibility requirements, the start and end date and time of the promotion, description of the prize(s) and their value, and how to enter. (For example, as Lawyer Mama found when she dug into the issue, some states have very strict disclosure and eligibility requirements and you either have to meet them, or exclude residents of those states from your sweepstakes or contest. Explains why sometimes you see a national contest with various state exclusions or differing terms for different states – SG)

What about the company donating the prizes? Does it have any liability?

Donna: If a company is donating a prize(s) for the promotion and is not the sponsor, than they are not liable. However, it is up to them to provide a detailed description of the prize and the true ARV (average retail value). For anyone that receives a prize worth $600 or more, you must create a 1099 and the winner is liable for taxes.

Should a blogger seek legal advice about her sweepstakes or drawing?

Donna: If you are worried about the potential consequences or your program is really complex or unique, you should absolutely seek advice. But you really need to make sure that any lawyer you retain is up to speed on promotional law, and most small business and personal lawyers are not. They can do the research, but you are probably better off consulting a specialist. I’d recommend that people start by consulting a promotional specialist like me, because we can also help with other aspects of the sweepstakes like fulfillment and contest structure. Typically, I can handle most issues that come up, but if we do need a lawyer, I work with two expert promotional lawyers on a regular basis.

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Check out Donna’s blog and Web site for more information on running a contest on your blog or Web site. And if you have any doubts or questions about a contest you’d like to conduct on your blog, especially if you have a very high value prize, get advice. A specialist like Donna can help, but at the end of the day, if you are doing something very unique, it is probably worth the call to a lawyer. The legal fee pales in comparison to the nuisance of a lawsuit if you have to deal with, in the words of Fake Steve, a “frigtard.”

Some additional resources, courtesy of Lawyer Mama:
http://www.wcsr.com/default.asp?id=534&objId=31
http://promomagazine.com/legal/marketing_staking_states/
http://www.gambling-law-us.com/State-Laws/California/
http://www.ct.gov/AG/cwp/view.asp?A=1772&Q=282452
http://www.dwt.com/practc/advertising/bulletins/09-05_FloridaSweepstakes.htm
http://findarticles.com/p/articles/mi_qa3629/is_199408/ai_n8713060

SUSAN IS NOT A LAWYER
This information is meant to bring awareness to the topic and is not intended to be used as legal advice. If you have questions about any of the information above or related matters, please contact an attorney licensed in your state.(Thanks, Lawyer Mama, for the disclaimer language)

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Lead management webinar

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I’ve just finished pulling together a webinar for my client GuideMark called "Five Tips for Improving Sales."

Full disclosure: this IS a lead generation vehicle for my client, who sells CRM systems, however, a large chunk of the presentation is based on my lead management philosophy and rating model. My posts here on these topics have received a number of comments, both public and private, so given the apparent interest, I figured I’d let you all know about it.

Here’s the pitch:

One of the most important things you can do to improve your sales is to close the gap between your sales and marketing teams. One salesperson or fifty, one marketer or a whole team, they often have diverging views of the task at hand. This gets in the way of growing your business and increasing your profits. This webinar will help you get these two critical teams working together toward the same goals. Topics include lead management and a brief demo of GuideMark’s SalesDRIVE CRM.

The content is about 2/3 lead management, 1/3 CRM.  I go through a lead rating model step by step, so if you’re interested in how this works, you might want to listen. Bonus if you are also interested in getting a CRM system 🙂

Dates and times: Wednesday November 29th at 10am, Monday December 4th at 10am and Wednesday December 6th at 2pm

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Epilogue: Wal-Mart and Edelman

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Well, as many PR bloggers have already reported (best round-upto date is Constantin’s), Edelman has emerged from the cone of silence around the Wal-Mart fiasco. On Richard Edelman’s blog, an apology and acceptance of total responsibility. And on Steve Rubel’s, a short comment and link to Richard’s blog.

Quite frankly, I do not see how the agency could have done anything else. It could be Edelman’s fault. Might not be. Probably is. Doesn’t really matter. Whether it was their fault or not, the agency must fall on the sword for the client. Or lose the client.

I know a lot of folks would love to be privy to the post mortem on this disaster. To them, I say, how does it feel… to want. We know what we know and we ain’t likely to know much more. And I don’t really care. I’m more interested in:

  • what Edelman does in the future. Will they finally learn and get it right the next time? What Richard and Steve say is all good and well, but the proof is in what they DO;
  • the lessons we can all learn about honesty and grassroots marketing from this fiasco.

I’ve commented on a number of other blog posts about this mess, among them Kami Huyse and Peter Himler, that the real shame is that had they done this right, with honesty and clarity about the sponsorship, this RVing blog might just have worked. People with RVs do stay in Wal-Mart parking lots. That’s not an invention. They might have rallied around a blog that focused on them, their lives, their culture.  If it was well written, corporate sponsored or not, the public might have enjoyed it. Many do shop in Wal-Mart, image problems notwithstanding.

Bottom line, had there been truth, I would have given it a big, so what. A good idea is still a good idea even if the corporation has it. The error isn’t in sponsoring a blog to advance a corporate objective. The error is the lie. People can forgive many things. But generally and pretty universally, we hate being lied to.

I’m pretty sure the folks at Edelman and Wal-Mart get this now.

There is nothing wrong with trying to spark something in the "grassroots."  If you’ve understood the situation, and deliver a compelling message, it will take fire. That’s what viral means — the message is so compelling it propels itself through the social network. But we cannot create a grassroots effect   Artificial, the campaign has no life, no community and cannot spread without more artifice and manipulation.

You must tap into something in the community for grassroots efforts to bear any fruit. Two recent examples come to mind, and I’m sure it will surprise none of my readers that both come from science fiction television, Firefly and Farscape. Momentum came from the community and the producers were smart enough to engage with, to love their communities. They treated them with respect and love, and guess what? When the franchises needed support, the communities around them sprung to action.

In both cases, the TV shows were cancelled and fan support had a great deal to do with subsequent movies. In the case of Firefly fans, strong DVD sales provided further proof for the movie studio that the decision to greenlight a feature film (Serenity) was the right one. And when it came time to promote the film, no fan base was more loyal than the Firefly fans.

Except maybe the Farscape fans, who lobbied for a resolution to their much loved and highly acclaimed series, and finally got it in 2004 with the Peacekeeper Wars miniseries. I wasn’t a Farscape viewer when it was on TV but now, having seen all the episodes, I can say without hesitation that it is a damn shame the show was cancelled. Can we have some more, please?

In both cases, the grassroots communities were there, and the shows were able to tap into the love to make things happen. Fans didn’t mind when Joss Whedon asked them to do something for Serenity. They knew he’d pay them back in spades. In fact, both fan groups are still going pretty strong online and to date, there are no (public) plans for more of either on TV or the big screen. [Boo Hoo]

That’s how a company can tap into the grassroots. And I do not believe that it  is only possible for science fiction franchises.

However, it is only possible when we understand that a grassroots campaign only works when the initial impetus comes from the community, not the corporation that benefits.

It’s grassroots marketing when the roots really are in the grass. When they are not, it is probably astroturf.

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